Can Darden Restaurants Deliver In Its Next Earnings?

Group 1 - Darden Restaurants (NYSE: DRI) is expected to announce its fiscal fourth-quarter earnings on June 20, 2025, with analysts predicting earnings of $2.94 per share and revenue of $3.25 billion, reflecting a 14% increase in earnings and a 10% rise in sales year-over-year [2] - In the fiscal 2025 third quarter, Darden achieved total sales of $3.2 billion, a 6.2% increase, driven by acquisitions and new restaurant openings, including the positive impact from the purchase of Chuy's [3] - Same-restaurant sales improved by 0.7%, with LongHorn Steakhouse seeing a 2.6% increase, while Olive Garden had a modest growth of 0.6%, and the Fine Dining sector experienced a decline of 0.8% [3] Group 2 - Darden reaffirmed its annual revenue forecast of $12.1 billion and adjusted its earnings outlook to a range of $9.45 to $9.52 per share [3] - The company has a current market capitalization of $25 billion, with total revenue over the past twelve months at $12 billion, operating profit at $1.4 billion, and net income at $1.1 billion [3] Group 3 - Historically, DRI stock has risen 55% of the time following earnings releases, with a median one-day increase of 5.8% and a maximum observed rise of 15% [2][5] - Over the last five years, there have been 20 earnings data points for DRI, with 11 positive and 9 negative one-day returns, resulting in positive returns approximately 55% of the time, though this percentage drops to 42% when considering the last 3 years [5]